On 21st April, French luxury group Kering Group announced a 27 percent sales uptick for its recently ended first quarter, a growth rate partially slowed by stagnant revenues in Japan and a quarterly decline in the company’s Asia-Pacific market, due to Covid restrictions in China and a decrease in Gucci sales.
The Paris-based company recorded revenues of €4.956 billion (US$5.35 billion) up 27.4 percent in reported terms and up 21.4 percent in comparable terms for the quarter ending March 31.
In Asia-Pacific, Kering’s largest market which represented 37 percent of total revenue, recorded a sales decline of seven percent during the quarter, hindered by new lockdowns in certain major Chinese cities. In Japan, which represented 6 percent of Kering’s total revenues, sales were stagnant.
By brand, Gucci comparable sales accelerated 17 percent in Japan, but fell 6 percent in the Asia-Pacific region. Saint Laurent increased 15 percent in Asia Pacific and grew nine percent in Japan, while Bottega Veneta sales grew 28 percent in Japan while remaining flat in Asia-Pacific. Kering’s other brands category grew in both regions, up 30 percent and 26 percent in Japan and Asia-Pacific, respectively.
“We opened 2022 on a very solid first quarter in a more uncertain environment, notably impacted by tightening Covid restrictions in China since March,” said François-Henri Pinault, chairman and CEO of Kering Group.
“All our houses posted double-digit revenue growth in the quarter, with spectacular performances at Saint Laurent, our Other Houses, particularly Balenciaga, and Kering Eyewear.
“Bottega Veneta also delivered sharp higher sales on a more demanding base. Gucci’s strong showing in North America and Europe was overshadowed by its exposure to China, where we are boosting its organization to fully capture the vitality of the market. While we remain attentive to economic and geopolitical conditions, we invest in all our brands, whose attractivity will continue to fuel our growth and profitability,” Pinault continued.
“Finally, I want to express my heartfelt sympathy, on behalf of all of us at Kering, to the people whose lives are affected by the war in Ukraine,” he concluded.